Yonder joins forces with GoCardless to offer Variable Recurring Payments
By Gloria Mathias
Yonder, the modern rewards credit card, has extended its relationship with GoCardless, the bank payment company, by adding Variable Recurring Payments (VRPs) alongside the direct debit functionality it previously used.
Owing to GoCardless’ Instant Bank Pay, Yonder cardholders, or members, will be able to use VRPs to instantly pay off their credit card balance.
The arrangement means that Yonder can access both direct debit and instant, recurring open banking payments through a single provider. Not only does this make it easy to offer members more payment choices and greater control, but it also provides Yonder two options for collecting repayments, pairing a ubiquitous, tried-and-true payment method with the help of technology.
Tim Chong, co-founder and CEO at Yonder, said, “In these economic conditions, consumers want more control over their finances. VRPs are the perfect solution. Since we’ve introduced them, we’ve seen many members move from monthly to weekly or even daily repayments. The instant nature of VRPs means they can immediately free up their credit line and take full advantage of our rewards or gain peace of mind that their balance is cleared. Simply put, VRPs allow our members to manage their repayments in a way that works for them.
“We’ve used GoCardless for Direct Debit for over a year, and given their expertise in bank payments, it made sense to add VRPs and offer the two together. Because it’s still early days for open banking, we wanted to have a fallback payment option for our members in case their banks don’t currently offer VRPs or they encounter the odd hiccough as the technology continues to develop. Direct Debit, which has been around for decades, is a great complement.”
Pat Phelan, MD of UK&I and Chief Customer Officer at GoCardless, said, “We’re proud to expand our relationship with Yonder, providing VRPs so they can continue to create an excellent member experience. By combining Direct Debits and VRPs, Yonder can benefit from the best of bank payments, tapping into two payment methods that are fast, secure, and cost-effective.”
IBSi Daily News Analysis
February 28, 2024
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